The Worley Ltd (ASX: WOR) share price is edging lower in mid-morning trade despite announcing a new contract award.
At the time of writing, the global engineering company's shares are fetching $10.79, down 1.1%.
New contract
Investors appear to be unfazed by the company's latest update, sending Worley shares in negative territory.
According to its release, Worley advised it has won a front-end engineering services contract with Phillips 66 Company (Phillips 66).
The new deal will see Worley provide services to transform Phillips 66's San Francisco refinery into a renewable fuels-manufacturing facility. Located in Rodeo, California, the project once completed is expected to produce 2.5 billion litres annually of renewable transportation fuels. The facility will be fed from cooking oils, fats, greases and vegetable oils and convert them into clean energy.
Worley noted that the renewable fuels-manufacturing facility is set to be one of the world's largest of its kind.
The project will be managed by Worley's North America West team, with support from its Global Integrated Delivery team.
Worley CEO, Chris Ashton welcomed the deal, saying:
As a global company headquartered in Australia, this project aligns with our strategic focus on sustainability and delivering a more sustainable world. We are pleased that Phillips 66 has engaged Worley in this important renewable fuels project and look forward to supporting Phillips 66's energy transition goals, while also supporting Worley's strategic focus on future fuels.
Worley share price summary
Over the past 12 months, the Worley share price has moved over 50% higher after hitting multi-year lows during COVID-19. Since the beginning of this calendar year, however, the company's shares have dropped around 6%. Worley shares are currently sitting in the mid-range of the 52-week performance, between its low of $6.36 and high of $14.01.
On valuation grounds, Worley presides a market capitalisation of approximately $5.63 billion, with more than 522 million shares on issue.
